Vancouver, British Columbia--(Newsfile Corp. - April 4, 2017) - Discovery Harbour Resources Corp. (TSXV: DHR) ("Discovery Harbour" or the "Company") is pleased to announce that has entered into a second amendment agreement with Genesis Gold Corporation to acquire the Caldera Project, an epithermal gold property in Nevada, located approximately 30 kilometers west of Kinross Gold's Round Mountain epithermal deposit, which produced 378,000 ounces of gold in 2016.
The parties have agreed to amend further several terms of the original exploration license and option-to-purchase agreement ("Original Agreement") announced in a press release dated Nov. 23, 2016, which were first amended in February, as set out in a news release dated Feb. 27, 2017. Both releases may be viewed on SEDAR.
The second amendment achieves the following:
- the due date for the second advance royalty payment of $15,000 USD has been extended to June 30, 2017;
- the net smelter return royalty ("NSR") has been reduced from a sliding scale between 3% and 2%, down to 2%, and fixed at a 2% NSR; and
- the $3,000,000 purchase price contemplated has been eliminated. Instead, the payments will consist solely of the annual advance royalty payments, and such NSR as would be due. The Company will receive title to the property when the sum of the advance royalty payments reaches USD$400,000.
The Company shall issue to Genesis Gold 500,000 share purchase warrants exercisable within three years of the date of grant. Each warrant entitles the holder to purchase one common share of the Company for CAD$0.05
Except as amended, the Original Agreement remains unchanged. The Original Agreement, as amended, remains subject to TSX-V and regulatory approvals.
Additionally, Discovery Harbour has elected not to proceed with the option to acquire the Jersey Valley Property so that it can focus all its resources on the Caldera Project.
Mark Fields, Interim President and CEO, stated: "We appreciate the constructive co-operation of Genesis Gold. I believe the amended terms and the focus on the Caldera Project significantly enhance Discovery Harbour's ability to secure the necessary financing to test the promising epithermal gold targets on the Caldera Property."
Michael J. Senn, a licensed professional geologist, is the qualified person for Discovery Harbour as described in National Instrument 43-101, and has reviewed and approved the technical contents of this release.
For further information, contact Mark Fields by telephone at (604) 562-7555.
